Simplification of the Financial Framework 2014-'20

Some examples

With the publication of the proposed multiannual financial framework for 2014-20, the Commission is reviewing and simplifying the rules governing EU funding. The aim is:

• to deliver payments faster
• to provide easier and quicker access to EU funding for all applicants

The Commission's proposal is now before the European Parliament and EU finance ministers, who must approve it before it can take effect.

"In total, the Commission has proposed over 120 simplifications to the rules governing European Union funding for SMEs, towns and regions, students, scientists and also NGOs working in the area of development aid. They include: a reduction in the overall number of programmes, more coherence and clarity of rules, clearer objectives and indicators, simplified forms of grants and a decisive move towards a faster delivery of payments. These are direct measures to ensure smoother and faster access to EU funding for applicants, so that money can be more efficiently mobilised in order to boost the European economy and jobs." - José Manuel Barroso, President of the European Commission

Examples of improvements proposed by the Commission which are being contested in the legislative process

1. Simpler and comprehensive rules for financing
2. Definition of budget execution elements by implementing act
3. Move to output-based model of grants
4. Avoid burdensome procedures, when quick decisions are needed
5. Reduce the number of national paying agencies to cut red tape and allocate funds rapidly
6. Stop overloading legal texts with inappropriate rules for national fund allocation
7. Make access to EU research funding easier
8. Make access to EU cohesion funding easier
9. Focus European Social Fund on projects that make difference
10. Make access to "Erasmus for All" programme easier
11. Use recourses planned for Connecting Europe Facility (CEF-Infrastructures) smartly
12. Use of innovative financial instruments to attract more capital on infrastructure projects

More information on the 2014-'20 multiannual financial framework:

• Second simplification scoreboard for the MFF 2014-2020
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• European Commission Communication on the 2nd Simplification scoreboard for the MFF 2014-2020 and corresponding news article
• First simplification scoreboard for the MFF 2014-2020
  bg cs da de et el en es fr it lv lt hu mt pl pt ro sk sl fi sv
• President Barroso pushes for further simplification of the EU budget
• Measuring the impact of changing regulatory requirements to administrative cost and administrative burden of managing EU Structural Funds (ERDF and Cohesion Funds)
• Commission proposal on simplification
• Background documents
• 2014-20 multiannual financial framework website
• Basic guide to the multiannual financial framework
• Study: Measuring the impact of changing regulatory requirements to administrative cost and administrative burden of managing EU Structural Fun

Examples of proposed improvements:

1. A single procedure
2. Cutting red tape
3. Shorter payment time for research grants
4. Reducing the administrative burden
5. Using electronic media instead of paper
6. Justify results, not costs
7. A single legal framework
8. Fewer spot checks on farmers

 

Simpler and comprehensive rules for financing

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While the new Financial Regulation has reinforced and consolidated ex-ante democratic scrutiny of the budgetary authority (Article 38 FR), the co—decision deliberations tend to limit the management flexibility of the Commission and the scope of the choices of the budgetary authority in allocating the annual budget. This would affect the performance of programmes and reduce the flexibility and room left by legislation for budgetary execution under the next programming period.